MACOM Initiates Legal Action Against Infineon Technologies Over Next-Generation Semiconductor Technology for 4G/LTE & 5G Netw...
April 26 2016 - 4:10PM
Business Wire
MACOM believes that Infineon, as an incumbent
supplier of previous generation technologies, is attempting to
delay or deny MACOM’s ability to bring this technology to
market
MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI)
(MACOM), a leading supplier of high-performance analog RF,
microwave, millimeterwave and photonic semiconductor products,
today announced that it has initiated legal action against Infineon
Technologies and International Rectifier (acquired by Infineon in
2015), to defend its rights to use the pioneering and patented
gallium nitride on silicon (GaN) technology developed by Nitronex
(acquired by MACOM in 2014) in MACOM’s core markets. GaN is a
next-generation technology that promises to improve network data
service and cell coverage of 4G/LTE and 5G basestations while
reducing their energy consumption and associated carbon
footprint.
In its suit, filed in the United States District Court for the
Central District of California in Los Angeles, MACOM alleges that
Infineon has attempted to interfere with and usurp MACOM’s rights
under certain agreements between Nitronex and International
Rectifier. “Nitronex and IR, and later, MACOM and IR, successfully
collaborated for many years. Problems developed only after Infineon
acquired IR and began to try to ‘renegotiate’ the Nitronex-IR
agreements to reduce MACOM’s rights,” said John Croteau, President
and Chief Executive Officer of MACOM. “When MACOM declined to
accede to Infineon’s demands, Infineon concocted claims to
interfere with our rights under the agreements.”
“Infineon’s behavior is clear validation that MACOM’s GaN
technology – the product of 15 years and over $100 million in
investment – is at the tipping point of market adoption,
threatening large incumbents like Infineon. We believe this has
caused Infineon to engage in strong-arm tactics designed to retard,
rather than accelerate, innovation,” said Croteau. “We submit that
such business practices are unethical and anti-competitive and will
strenuously oppose them as a matter of course,” added Croteau.
MACOM’s suit against Infineon includes claims for breach of
contract, breach of the covenant of good faith and fair dealing,
declaratory judgment of contractual rights, and intentional
interference with contract. Among other relief, MACOM is asking the
court to grant MACOM declaratory and injunctive relief confirming
its rights under the Nitronex-IR agreements and ordering Infineon
to assign to MACOM several Nitronex GaN patents.
MACOM has built a highly-successful business that has benefited
both the electronics industry, consumers and MACOM’s shareholders
through the acquisition and integration of companies and
intellectual property rights that support its strategic plans.
Defending its intellectual property rights is core to MACOM’s
success and MACOM has previously prevailed against large company
infringement of its rights.
ABOUT MACOM:
MACOM Technology Solutions Holdings, Inc. (www.macom.com)
supplies key enabling technologies for the Cloud Connected Apps
Economy and Modern Networked Battlefield. Recognized for its broad
catalog portfolio of technologies and products, MACOM provides
high-performance analog RF, microwave, millimeterwave and photonic
semiconductor products for diverse applications ranging from high
speed optical, satellite, wired and wireless networks to military
and civil radar systems. A pillar of the semiconductor industry, we
thrive on more than 60 years of solving our customers' most complex
problems as their trusted partner for solutions ranging from RF to
Light.
Headquartered in Lowell, Massachusetts, MACOM is certified to
the ISO9001 international quality standard and ISO14001
environmental management standard. MACOM has design centers and
sales offices throughout North America, Europe, Asia and
Australia.
MACOM, M/A-COM, M/A-COM Technology Solutions, M/A-COM Tech,
Partners in RF & Microwave, Partners from RF to Light, The
First Name in Microwave and related logos are trademarks of MACOM.
All other trademarks are the property of their respective
owners.
For more information about MACOM, please
visit www.macom.com follow @MACOMtweets on Twitter,
join MACOM on LinkedIn, or visit the MACOM YouTube
Channel.
Special Note Regarding Forward-Looking Statements
This press release contains forward-looking statements based on
MACOM management's beliefs and assumptions and on information
currently available to our management. Forward-looking statements
include, among others, information concerning the potential
adoption of MACOM’s GaN by the market and the potential benefits to
industry and society of GaN adoption, as well as any statements
concerning the relief sought by MACOM and the outcome of the legal
action.
Forward-looking statements contained in this press release
reflect MACOM's current views about future events and are subject
to risks, uncertainties, assumptions and changes in circumstances
that may cause those events or our actual activities or results to
differ materially from those expressed in any forward-looking
statement. Although MACOM believes that the expectations reflected
in the forward-looking statements are reasonable, it cannot and
does not guarantee future events, results, actions, levels of
activity, performance or achievements. Readers are cautioned not to
place undue reliance on these forward-looking statements. A number
of important factors could cause actual results to differ
materially from those indicated by the forward-looking statements,
including those factors described in "Risk Factors" in MACOM's
filings with the Securities and Exchange Commission (SEC),
including its Annual Report on Form 10-K for the fiscal year ended
October 2, 2015 as filed with the SEC on November 24, 2015. MACOM
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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KeatingBill Fallon, 212-925-6900M:
973-768-6764bfallon@keatingco.com
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